tv BBC Business Live BBC News May 8, 2017 8:30am-9:01am BST
this is business live from bbc news with ben thompson and sally bundock. emmanuel macron wins the french presidency, but that may prove to have been the easy part. we assess how his en marche! movement hopes to tackle the huge problems facing the french economy. live from london, that's our top story on monday 8th may. brussels receives a brexit boost! emmanuel macron beats the eurosceptic marine le pen to become france's new president. following the election result, we're live from a city trading floor for all the latest market reaction. markets today, in mixed picture opening up across europe but some relief for global investors. is the smartphone set to replace our doctors and opticians?
later in the programme we'll get the inside track on a tech company which aims to tackle the worldwide problem of poor eyesight. a new survey has found that online spending in the uk has fallen for the first time since 2013. today we want to know whether your expectations of the future are affecting your spending decisions? do get in touch — just use the hashtag bbcbizlive. hello and welcome to business live. so emmanuel macron has won the french presidency, and now the hard work begins. his first challenge will be to form a government with crucial parliamentary elections in june. the outcome of that will determine how much power the new president has to tackle the lengthy list of economic problems. france has had a high unemployment rate for decades: currently around 10% of the workforce — or 3 million people. that compares with less than half — 4.3% across the border in germany.
the problem is worse for young people: 24% of those between the ages of 15 and 2a don't have a job. the other big issue is the size of the public sector in france — one of the largest in the world — last year it accounted for over 50% of national income. this is something macron has promised to tackle and bring down costs. with an economy that has seen faltering growth for years some experts say it will bring much needed savings. let's start by giving new market reaction. tanya beckettjoins me now from a trading floor in the city... we had 30 minutes trading in europe, how is it going? very much a sense of relief, the halo hunt stockbroker
floor. the bars are starting as the markets open, we saw some fluctuation in the euro but largely this was priced in, the opinion polls suggesting this outcome and thoughts now moving to fort next. post—election france. more importantly post—election eurozone and eu. can emmanuel macron as you've raised the question can he actually deliver on these reforms or what next for france or is populism going to be an issue that is going to find itself coming back in a few yea rs 7 to find itself coming back in a few years? that's the big question. as you know, tanya, it typical to know what happens next but i guess in terms of political risk there was concern at the start of this year, we've had france, the netherlands, germany is next. yes, germany is next but are not facing exactly the same problems between angela merkel and schultz in germany because france has said different economic trajectory from germany and this is pa rt trajectory from germany and this is part of the problems which underlies
this move to populism. france if we come back to france, the problem has been there has been a widening of the wealth gap of course, we seen that elsewhere, in terms of germany, its growth path has been very weak indeed, compared to its larger european partner and france now wa nts to european partner and france now wants to make up that gap, there is a little bit of envy there but whether it can push through these labour reforms which many see as being absolutely key to achieving that is quite another question. from the german side of the border this is an excellent outcome. micron has stated he is a committed to the eu, committed to the eurozone, he is not committed to the eurozone, he is not committed to the german trade surplus, there will be a little fire between the countries but economic it, much more on the same page than they have been for the last decade in terms of what is required because again, look to berlin, we've seen some profound labour reforms, what many see as key to delivering that economic growth we've seen and
particularly that has shown itself in post—financial crisis, hasn't emerged in france. whether macron can deliver that, he's advocating slow pace to reform but he thinks that will deliver, we could be talking many years before it does. ta nya, talking many years before it does. tanya, thank you, we'll see you again later. with me is dr francoise boucek, lecturer at the school of politics and international relations at queen mary. university of london nice to see you and welcome. tanya running through some of the economic issues that mr macron has to do with, i suppose the question is where does he start on fortune be first on his list? firstly, he has to wina first on his list? firstly, he has to win a majority in parliament next month and that will be a tall order. he is more likely to have to do with a coalition government in which case he will have possibly some awkward partners who are going to try and block some of his more drastic reforms that he wants to bring in.
particularly —— particularly to reform the labour market and because he is more likely to form a coalition with parties on the left, he is lucky to have a lot of opposition there. plus he will have to conduct with the power of the street and in france, whenever it there are any large important reforms of social policy or economic policy there is usually people coming down on the street. listening to you and what you said, you think has he any hope at all because he will have a coalition, difficult government. also he has the front national as the main opposition, the power of the street, can he get through any radical reform? it's more likely we'll end up with legislative gridlock, i think, he is threatening to push these labour reforms by presidential decree and the french president has these powers because the reforms were
already introduced by the francois hollande government that reform the french labour code, which is a huge document with lots of aspects already there, people descended on the streets and protested. we covered it all, regular protesting. the issue of voter dissatisfaction is so interesting, looking at the first round of voting, nearly half of all voters backed a ticket that was an anti globalisation ticket, they said they wanted something entirely different, barriers to run free, trade to end, he have to recognise some of that, wouldn't he? absolutely, his project is embedded in the european project as well and he's the only one who's pushed the european agenda so a0 has in mind for the eurozone is quite drastic, whether he can get it through. he wa nts whether he can get it through. he wants major institutional changes, he wants a europe list of finance
for the eurozone countries and he wa nts a for the eurozone countries and he wants a eurozone parliament and he has a vision of bringing about a transferring of fiscal federalism which germany will not go along with but that is kind of his vision. he's very likely to also come up against opposition because of his approach, it's almost on a european scale, what he has in mind. that's all we have time for which is a real shame but to ask you, which part of france are you from? brittany. which is one of the highest regions to vote for macron, a huge majority. very interesting, thank you for coming m, interesting, thank you for coming in, we appreciate your analysis. i used to live in brittany. you did? that is for i am from,! you should go for coffee. great coastline. we have a life page dedicated to all of
this analysis. many leaders congratulating emmanuel macron. stay tuned to bbc news — we'll have plenty more from france throughout the day. in just over an hour, both emmanuel macron and the outgoing president — francois hollande — will attend a ceremony commemorating the end of the second world war. let's take a look at some of the other stories making the news... facebook has broadened its campaign to raise awareness about fake news, by publishing adverts in the uk press. the adverts carry a list of ten things to look out for when deciding if a story is genuine. they include checking the article date and website address, as well as making sure it isn't intended as satire. facebook is under fresh political pressure to tackle fake news in the run up to the uk general election. china's exports and imports
rose in april but missed analysts‘ expectations, as domestic and foreign demand slowed and commodity prices fell. domestic and foreign demand slowed. exports rose 8 percent in april, while imports were up 11.9 percent. the country's trade surplus last month came in at $38.05 billion, higher than projected by analyst. reports say the pentagon has backed a plan to invest nearly $8 billion to boost the us presence in the asia—pacific region. the wall streetjournal says the money will be used to upgrade its military infrastructure, conduct additional exercises and deploy more forces and ships over the next five years. dulux paint owner akzonobel has turned down a third takeover bid from us rival ppg which valued the business at about $29.5 billion. the firm says its chief executive and chairman met with ppg, but decided that the business was "best—served by its own strategy to accelerate growth and value creation". that means theyjust didn't agree!
would have saved us a lot of time. the dulux dog is leaving. thanks but no thanks was the message. the start of a new trading week and as european markets digest news of the french presidential election and that victory for emmanuel macron, over in the us it's all about corporate earnings. samira has the details of a busy week ahead on wall street. earnings continue this week with companies that are worth highlighting. 0n companies that are worth highlighting. on tuesday we will hear from highlighting. on tuesday we will hearfrom media highlighting. on tuesday we will hear from media companies highlighting. on tuesday we will hearfrom media companies walt disney and news coanda on wednesday when he first century fox will report its earnings. this is significant as the company is waiting on approval from the significant as the company is waiting on approvalfrom the british government for its 1a and a half billion dollar takeover bid of sky news. and on thursday to hearfrom american retail giant macy's, the
companies will close about 100 stores in the next few years, about 1596 stores in the next few years, about 15% of all stores. macy's continues to face intense pressure from online retailers as well a struggling with underperforming stores. 0n retailers as well a struggling with underperforming stores. on friday will focus on some economic news with the latest numbers on retail sales in the united states as well as consumer sentiment on the consumer price index, inflation. that this era in new york. —— some era. joining us is james bevan, chief investment officer at ccla investment management. we've touched on europol ready, a quick take not, we have seen some reaction the other way. this is unambiguously positive for the euro project and the next big test is italy, not germany. forthe project and the next big test is italy, not germany. for the moment, great news. interestingly the price of oil edging up today, news from 0pec which is helping oil stocks on the market. oil price is pretty
bumpy and i'm not expecting it to go up bumpy and i'm not expecting it to go up in any trend basis because every time 0pec says it will cost maintain low production the us pond is more. in terms of the announcement at the saudi arabia of saying they will extend lives as 0pec generally is doing everything it can... but when we look at the rig count in the states, last week it was up again, every time there is a little bit of relaxation from 0pec us is straight in. big week for corporate earnings, what are you watching? for me it's not just a what are you watching? for me it's notjust a big week for corporate earnings, bigwig in terms of state m e nts earnings, bigwig in terms of statements about central bank policy because we all know the central bank will want to tighten up at some point, were going to be looking for early signals in press briefings, in announcements as to think that is likely to be. give us your take on the company we mentioned saying no to ppg. that has an excellent engine for delivering shareholder growth and on that basis it doesn't believe
that combine will add value, the shareholders who corporate are told we will not do that and they will be grumpy buti we will not do that and they will be grumpy but i think the april statement that akzo but i'd is clear for the generation will come from andi for the generation will come from and i think the bulk of investors. for that, they are discounting this will go away. thank you, james will be back later. more to touch on with james in the programme. still to come: is the smartphone set to replace our doctors and opticians? later in the programme we'll get the inside track on a tech company which aims to tackle the worldwide problem of poor eyesight. you're with business live from bbc news. the halifax has just released its house price study. the research has found that annual house price growth is unchanged at 3.8%. let us go to leeds now
and speak to martin ellis, an economist from the halifax for the rest of its findings. talk us through the numbers because it is watched closely this. we're obsessed by house prices, but this gives us an indication what's happening out there at the moment in the real world? we happening out there at the moment in the realworld? we have happening out there at the moment in the real world? we have seen happening out there at the moment in the realworld? we have seen house prices fall slightly. just down 0.1%. and that comes after a couple of months where we've had no change in house prices at all. so, we're seeing a state here where house prices have really plateaued and actually if you look at the latest three months, they're down slightly on the previous three months. that's the first time we have seen a decline in house prices on a quarterly basis since the end of 2012. so the first time for quite a while. it is very, very fractional. just a slight decline. martin, if we look at different parts of the uk,
what stands out to you? a story we had last week on this programme was estate agents offering a free car with a house sale in london. they're having such a tough time? well, that's right. there are parts of london, typically the more expensive areas where we are seeing lots of incentives now to try and get people into buy. we are seeing falls in house prices in some parts in london. in outer london, we are still seeing house price growth, but the main story here is really that we have seen a period where house prices have risen very rapidly particularly between 201a and 2016. and much more sharply than average earnings. people's earnings really doing very little. so, it hasjust become incredibly ex—expensive for a lot of people to be able to afford that home. that's putting a natural constraint on housing demand and that's really why we have seen this sharp slowdown in house price inflation. now if we look backment
we're talking about an annual rate of below a%. that's unchanged from last month, but over a year ago, we we re last month, but over a year ago, we were seeing double digit house price inflation. house prices were 10% higher than a year earlier. martin, thank you. martin ellis at the halifax. there is more on the business live page. more reaction to events in france. you're watching business live. our top story: all the reaction to the victory of emmanuel macron in france in the french presidential elections. markets are mixed. it had factored ina markets are mixed. it had factored in a victory for emmanuel macron. fa ct in a victory for emmanuel macron. fact will markets. so since the first round of the presidential election in france the cac has gone
up election in france the cac has gone up by election in france the cac has gone up by 7%. today, down 0.5%. no surprise. no. you should change jobs. now, does the future of medical diagnosis depend on the smartphone? peek is one social enterprise hoping to change all of this. the company's portable eye examination kit contains a 3d—printed adapter that clips onto a smartphone camera and allows users to see inside the eye. estimates suggest that there are currently 2.5 billion people in the world with poor vision and no access to treatment. the peek school screening programme has already test more than 8a,000 children in developing countries such as botswana, india and kenya as part of the peek school screening programmes. with me is dr andrew bastawrous, co—founder and chief executive 0fficerfor peek vision. i've got your name wrong. andrew,
you have brought your device in. just quickly show us how it works. to being able to see inside the eye is hugely beneficial for diagnosing eye problems and other problems. what we have been able to do is put this device... put it up higher so oui’ this device... put it up higher so our viewers can have a look. we put this device on to a smartphone so you can this device on to a smartphone so you can see this device on to a smartphone so you can see inside the eye while looking at the screen. you can record the image and share it with someone else to review. the medical practitioner, the trained person, has the smartphone. they need to buy the extra add on bit and that's $200 and that means clearly, it is much
more accessible then for anyone around the world to be able to travel out. they need the smartphone and the kit that sticks on the top? ican give and the kit that sticks on the top? i can give you an example of where it has been used recently. i was living in ken why for a couple of yea rs living in ken why for a couple of years and there was a lady in her 90s, one of our field workers went to her home, it was a typical old mud village and they found her and did a vision test on our app and found that she was blind in both eyes. as soon as they identified she couldn't see, the information was sent to the hospital three hours away. she was taken to the hospital because she was geotaged, she she haved treatment and had her sight restored having been blind for over 20 years. when she was taken home, she started to see things that she hadn't seen in over two decades and stood at the doorway to her house with her son, but she didn't know that was her son and he was looking
at her with great anticipation until he spoke and said, "how are you doing?" it was only in that moment that she realised it was her son. she recognised his voice. that's incredible. there are millions of people who are unnecessarily blind and what we're trying to do is increase the access to that community. to those who can provide services. you're blind, aren't you, and your story and your background is why you're involved? yes. although a lot of people are blind from cataracts, you can be blind from cataracts, you can be blind from needing a pair of glasses. i'm short—sighted, but with contact lenses in i have perfect vision and the estimates are 2.5 billion people can't see as well as they could if they had basic treatment like glasses. you can use technology as well to explain that. many parents of young children might not know that their children are suffering andi that their children are suffering and i don't know if we can show this to viewers. this is part of the app and it gives parents or anyone else and it gives parents or anyone else an understanding of what it is their children can actually see and what
they should be able to see and that really paints a picture then of why that help is so needed? it is hugely important. if you tell someone that your vision is 6/60 that means something if you're in my world. this image there on the left, obviously you can see it blurs according to the prescription of whoever is suffering from the sight loss and that would be normal vision on the side. so that gives a really visual indication of how problematic it is for people who don't actually know they're suffering from sight loss ? know they're suffering from sight loss? exactly. i was know they're suffering from sight loss? exactly. iwas one know they're suffering from sight loss? exactly. i was one of those children. i didn't know i couldn't see. i knew i was doing well at school. when i got my first pair of glasses, i could see stars and leaves on trees and it changed my life. that's why we're empowering teachers, teachers are screening in schools, but they understand what it means. so rather than just schools, but they understand what it means. so rather thanjust having schools, but they understand what it means. so rather than just having a result they're empowered on
following up and making sure the child gets treatment and we are close to having screened 100,000 children to make sure they get the right treatment. andrew, thank you very much for coming in. it has been great to hear the story about peek. you work with other companies with similar technology and advancement to help people see around the world. yes, best of luck with it. thank you for coming in. in a moment we'll take a look through the business pages but first here's a quick reminder of how to get in touch with us. the business live page is where you can stay ahead of all the day's breaking business news. we'll keep you up—to—date with all the latest details, with insight and analysis from the bbc‘s team of editors right around the world. and we want to hear from you, too. get involved on the bbc business live web page, bbc.com/business. on twitter we're at @bbcbusiness and you can find us on facebook at bbc business news. business live on tv and online, whenever you need to know. james bevan has returned.
volkswagen is in the news again. now they are in the papers talking about aus they are in the papers talking about a us turn around plan? it is a very grand plan indeed. they are saying they're going to get costs down and productivity up and they want margins of a% by 2020 and in 2020 they're going to shift focus into becoming dominant in electric vehicles over the period that then follows to 2025. that's a big ask. yes, they have got their work cut out anyway, image wise after the emissions scandal? what they have done well is launch sports utility vehicles, popular in the american markets so they have been increasing sales and we learnt that from the numbers last week. i guess they're trying to ride the popular, enthusiasm that's been engendered. let's look at the consumer spending
story. this is uk spending consuming spending dipping. online is dipping because people have been spending on things like chocolate and hot cross buns and leisure. but there is a bigger issue here which is that we are having higher import prices, poor wage growth and since brexit, the consumer has been borrowing money and clearly their preparedness and appetite to borrow money is diminishing and that's not good news for the uk economy. james, thank you very much for rattling through those stories. thank you for your company today. we will do at the same time, same place tomorrow. yes, do join us. see you then. bye—bye. hello. it's a new week, but it's not
a particularly new weather story. at least not in the first part of the week. we have the high pressure close by to iceland. it's still generating a noticeable wind off a cool north sea into the eastern side of the british isles and on that wind, we're ferrying in quite a bit of cloud to the north and the east of cloud to the north and the east of scotla nd of cloud to the north and the east of scotland and across the eastern counties of england, the best of the conditions as has been the case in recent days are to be found outside the western side of the british isles. it is here where we will find the highest temperatures during the afternoon. maybe not as warm as it has been during the weekend, but many western parts will be pushing on into the teens and close to 18 or 19 celsius. the cloud there to be had across the north and the east of scotland, perhaps breaking up to the eastern side of the pennines, but when you come down south of the wash, where you're in for a cloudy day and with the on shore breeze it will feel chilly, nine, ten, something of that order. underneath the clearer skies further west, the
sun is really strong at this time of the year. the uv levels are high. bear that in the year. the uv levels are high. bearthat in mind the year. the uv levels are high. bear that in mind if you're outdoors for any length of time. we'll keep a fair amount of cloud across the eastern side and central parts of the british isles. further north, underneath clearer skies in the north of scotland, a touch of frost in the countryside. further north, there maybe enough cloud for there to be the odd bit of spotty rain and tuesdayis to be the odd bit of spotty rain and tuesday is another dry day right across the british isles, but we've just opened up the isobars a tad so there won't be the strength of the wind across the eastern side of the british isles nor will it be on shore. at last, at last, it will feel warmer here despite the presence of a fair bit of cloud. as i say, predominantly another dry day say for the north of scotland. the best of the sunshine, western side of scotla nd best of the sunshine, western side of scotland and northern ireland, western fringes of wales into the south—west where temperatures are well on into the teens. dawn on wednesday could be a chilly affair with some of the cloud melting away. don't be surprised to see a touch of
frost in one or two spots. wednesday, again, another fine frost in one or two spots. wednesday, again, anotherfine and settled day. may start cloudy for some. still rain across the far north of scotland, but a lot of dry weather, but that could be the last of the dry days. for the southern half of the british isles because we're going to bring a band of cloud and rain and maybe the odd thunderstorm into southern parts and the breeze freshening again across northern britain. hello it's monday, it's 9 o'clock, i'm victoria derbyshire, welcome to the programme. an investigation by this programme discovers more than a thousand mistakes are recorded by maternity staff in hospitals in england every week. i'm angry and i'm always going to be angry because they've taken my son's life away from him. there's no reason why he shouldn't be with us today and i have to look at that for the rest of my life. everyday i have to live with the fact that i am a of the nhs. we'll bring you the full story